U.S. stocks rise as Fed stance seen less hawkish than anticipated
U.S. stock indices closed higher on Wednesday after the Federal Reserve hiked the interest rates and signaled two more rate hikes this year. The dollarr weakened as investors deemed the central bank’s stance on the pace of rate hikes this year less hawkish than expected: the live dollar index data show the ICE U.S. dollar index, a measure of the dollar’s strength against a basket of six rival currencies, closed down 1.1% at 100.572.
The S&P 500 rose 0.8% settling at 2385.26 led by energy stocks and financial sector the only one to close in the red. The Dow Jones industrial average gained 0.5% to 20950.10 led by Caterpillar (NYSE:CAT) and UnitedHealth shares. The Nasdaq index added 0.7% closing at 5900.05.
European stocks advance ahead of Dutch elections
European stocks closed higher on Wednesday led by energy stocks as oilprices rose. Both the euro and British pound rebounded against the dollar. The Stoxx Europe 600 rose 0.4% led by energy, basic materials and financial stocks ahead of Federal Reserve decision. Germany’s DAX 30 gained 0.18% to 12009.87. France’s CAC 40 added 0.23% while UK’s FTSE 100 index advanced 0.15% to 7368.64.
Asian stocks rally after Fed rate hike
Asian stock indices are higher today after the Federal Reserve signaled it plans gradual rate hikes with just two more rate increases as was indicated in policy makers’ December projections for 2017 rate hikes. Nikkei ended up 0.1% pairing early losses as yen advanced against the dollar.
The market largely shrugged off the Bank of Japan's decision to keep its monetary policy steady as widely expected. Chinese stocks are higher despite central bank’s decision to raise short-term interest rates 0.1 percentage points, the third in as many months: Shanghai Composite Index is 0.9% higher and Hong Kong’s Hang Seng Index is up 2%. Australia’s ASX All Ordinaries is up 0.2% despite data showed the country's jobless rate hit a 13-month peak in February and the Australian slipped against the dollar.
Oil prices rebound after U.S. stockpile draw
Oil futures prices are extending gains today as dollar slipped after Federal Reserve statement was less hawkish than expected, making commodities less expensive for users of other currencies. Prices rose on Wednesday after official data showed U.S. crude stockpiles fell by 237 thousand barrels last week when a build of more than 3 million barrels was expected. May Brent crude rose 1.8% to $51.81 a barrel on Wednesday on London’s ICE Futures exchange on news U.S. crude inventories fell for the first time in ten weeks.